RBI data shows its outstanding net short dollar position in the rupee forward market rose to $66.04 billion by end-November, up from $63.6 billion at end-October
The currency repeatedly fell to record lows during the year, slipping past the 91 level at one point, highlighting the sustained depreciation pressure
The selling comes as the rupee tested a series of record lows against the dollar this month, eroding returns for foreigners
Beyond the immediate cues, stalled India-US trade talks and foreign portfolio outflows continue to weigh on the rupee despite RBI intervention
The Indian rupee slipped past ₹90 per dollar in December 2025, down 4.9% for the year, underperforming peers amid volatile capital flows and uneven forex support
The key uncertainty remains the currency, but if that stabilises and growth improves, India can deliver respectable returns, says Christopher Wood, global head of equity strategy at Jefferies.
The rupee slipped to 89.72 per dollar on Monday on strong dollar buying in the NDF market, before trimming losses to close at 89.65 as dealers flagged a shift in RBI's approach
For planning, the split matters. Near-term levels determine the cost of payments due now. Longer-term expectations do not help if your fee deadline is in the next few weeks
Weak rupee and higher airfares are pushing up overseas travel costs for Indians, with long-haul destinations seeing package prices rise by up to 14% in 2025
Majority of the respondents said the domestic currency would appreciate to 88.5 against the dollar by end FY26
RBI intervened to curb speculative bets, say dealers
The rupee rose 0.73% to 90.37 per dollar, snapping a five-session fall, as dealers cited likely RBI dollar sales to curb volatility after the currency hit fresh lows
The Indian currency strengthened past 90-per-dollar mark in Wednesday's session as the central bank curbed excess volatility
The rupee is among the worst-performing currencies globally this year, sliding 6% against the dollar
A key reason is the Reserve Bank of India's $64 billion short-dollar position - a pledge to supply large amounts of dollars in the future through derivatives contracts with lenders
The rupee is currently the worst-performing Asian currency, with 5.95 per cent depreciation witnessed in 2025 so far
Mishra said rupee is expected to average around 90 per dollar by June 2026 and weaken further to 92 per dollar by June 2027
Stock Market Today: The BSE Sensex dropped to an intra-day low of 84,684, with Indian Rupee sliding to 91.05 versus the US dollar on Tuesday.
Rupee at record low: The unit opened 4 paise lower on Tuesday at 90.77 against the greenback, but fell 35 paise during the session to a new low of 91.08, according to Bloomberg
Dominance of flows has dulled the rupee's sensitivity to daily swings in its Asian peers, allowing the downside momentum to build and raising expectations of depreciation and speculative activity